State Street launches a fund for stablecoin issuers under the GENIUS Act
State Street's investment division has launched a new money market fund — the State Street Stablecoin Reserves Money Market Fund. This instrument was specifically designed for stablecoin issuers and fully complies with the requirements of the U.S. GENIUS Act, which came into force in July 2025.
The legislative act establishes clear rules for using money markets to back "stablecoins," creating a predictable regulatory environment for market participants. The first investors in the new fund were State Street Bank and Trust Company and crypto bank Anchorage Digital, confirming a high level of trust in the structure.
State Street Investment Management CEO Yie-Hsin Hung emphasized that the GENIUS Act has created transparent mechanisms for investing reserves, and the new product combines the company's decades of experience in cash management with modern digital asset infrastructure. Anchorage Digital, in turn, noted that the quality of reserve management is becoming a key factor in transforming stablecoins into basic financial infrastructure.
Stablecoin Market: Prospects and Challenges
According to analyst forecasts, by 2030, the volume of stablecoin issuance could reach $1.9–4 trillion amid active institutional adoption. This will inevitably increase demand for transparent backing mechanisms through government money market funds, similar to the one presented by State Street.
Recall that in May, State Street, together with Galaxy, already launched the tokenized SWEEP fund — a tool for managing liquidity 24/7 using stablecoins. The new product logically complements this ecosystem.
My expert opinion: The launch of the State Street Stablecoin Reserves Money Market Fund is not just another financial product, but a signal of the stablecoin market's maturity. Institutional giants are beginning to actively integrate blockchain solutions into traditional money markets, which will accelerate the legitimization of crypto assets in the eyes of regulators. However, the key challenge remains ensuring sufficient liquidity and transparency of reserves, especially when scaling to trillion-dollar volumes.